IB Business and

Management
Unit 1.2

What is the difference between a

public and a private sector
organisation?
Talk to your partner and produce a definition of each on your post it
note.

http://www.bbc.co.uk/programmes/p016kbqq

Complete the worksheet on Partnerships

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http://www.bbc.co.uk/education/clips/zw3xtfr

What is the key difference between a

limited company and a sole
trader/partnership?
Sole Traders and Partnerships are owned and managed by the same
people
With Limited Companies, the owners may not manage the firm.

Pick an appropriate legal structure for the

following firms and write at least one
paragraph to justify why you have chosen it:
Multinational sports brand
Local plumber
Plumbing company with approx. 50 staff based over
South East of UK

Partnerships!

http://
www.tutor2u.net/business/activities/beattheteacher
-legalstructures.pdf

Main features of some for-profit social

enterprises
Cooperatives

A form of partnership whereby the business is owned and run by all the
members. They can have more than twenty members, however.
The priority is not to make a profit but to sell products as close to cost price as
possible.
Risk of failing if they do not make a profit, so they typically do aim to make a
profit, but it is not their most important aim

Main features of some for-profit social

enterprises
Micro Finance Providers

Inspired by Muhammad Yunis, founder of the Grameen Bank in Bangladesh in

the 1980s
What do they do? Provide small amounts of finance to those who typically
would not have access to it (generally in low-income countries)
Good: Helps those in need to gain economic independence.
Bad: Can lead to very poor ending up in debt. Also, there is
some evidence that most people lives do not change.

Main features of some for-profit social

enterprises
Public Private Partnerships

https://www.youtube.com/watch?v=KWfqaZrLqhI
What benefits do the private sector bring?
What benefits do the public sector bring?

Public Private Partnerships

A business created between a private sector business and the public sector.

It typically involves the creation of a facility with a social aim.

The public sector usually provides the finance and the business provides the
expertise.
E.g. The Swedish Company Skanska helped build the channel tunnel.

Not-for-profit social enterprises

What does this term mean?

Can you think of some examples?

There are two main types

NGOs Support a socially desirable cause
Charities Aim to provide as much relief as possible for those in need. If
charitable status pay no tax

Not-for-profit social enterprises

Features of Charities
Profits are not generated
Donations are important
There is unclear ownership and control

Look at the websites for two NGOs

One should be local and the other international.
Make notes on:
The work they do
When they were established
Can you find any information about their funding or organisation?
You have ten minutes!